Overview

• Reddit's IPO saw shares soar by up to 120%, while Trump Media's stock experienced a one-day gain of up to 59% after its SPAC debut.
• The meme stock trend is fueled by an 'us versus them' mentality on social media, emotional investing, and stratospheric valuations attracting short-sellers.
• Experts offer three criteria for identifying potential meme stocks: social media fuel, emotion-driven investing, and high valuations.
• Despite questionable profit prospects, Reddit and Trump Media have become the latest meme stocks, with their trading activity driven largely by small investors.
• The phenomenon's resurgence comes amid a strong first quarter for the stock market, with the S&P 500 on track for a nearly 10% price gain.